Installment Note

Installment Note

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This is an example of an installment note, which is essentially a promissory note that calls for periodic payments to pay off a debt. This document is provided as is without any warranty, and it is not intended to be used as a substitute for legal advice. 

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INSTALLMENT NOTE

 

$ ______________ (Note)                                                                 __________ (Date)

 

For value received, the undersigned _____________________________________

(“Borrower”), _________________________________________ (Address), promises to pay to the order of ____________________________________("Lender”), the face value of the loan or note of $ _____________ at a monthly interest rate of __% or annual interest rate of __%, in monthly Installments as described further below, to a place designated by Lender, which may from time to time change per the written notice of Lender to Borrower, with the initial address being ___________________________.

 

Until the Loan or Note is due in full, for whatever reason, the unpaid principal and accrued interest shall be payable in monthly installments (“Installments”), payable on the first of each month (“Installment Due Date”) of $ __________, and continuing until ______________ (“Due Date”), at which time the remaining unpaid principal, interest, and other costs, if any, shall be due in full unless this Note was called earlier per the rights of the Lender under this Agreement.

 

Any payments on this Note shall first be applied against legal or collection costs until paid in full, as then may be due, and then against outstanding interest until paid in full, as then may be due, and finally applied to the outstanding principal balance.

 

1.  Prepayment.  The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date with no prepayment penalty.

 

2.  Collection Costs, Attorney’s Fees, and Late Charge.  If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process, without protest of any kind, legal or otherwise.  If the note remains unpaid for an additional 30 days after Lender gives demand, the Borrower shall be required to pay a 5% late charge based on the Installment amount.  Each late Installment shall make another 5% due.

 

3.  Default Events.  If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become due immediately, without demand or notice:

 

1) failure of the Borrower to pay the monthly installment payment on or before the Installment Due Date;

 

       2) death of the Borrower or Lender;

 

       3) filing of bankruptcy proceedings involving the Borrower as a Debtor;

 

       4) application for the appointment of a receiver for the Borrower;

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